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Converting a existing house to split to main residency and Granny flat

Discussion in 'Renovation & Home Improvement' started by Rajanmegamind, 17th Apr, 2016.

  1. Rajanmegamind

    Rajanmegamind New Member

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    Dear members.

    This is a 5 bedroom dwelling which has been approved as single dwelling. Planning to rent the 3 bedder on the front of the house and then put in a kitchen in the Ground floor and rent it a 2 bedder. Both the front and back are attached and i'm quite sure there is no firewall rating in between.
    2 bedder has separate access but doesn't have a car space.
    Does putting a extra kitchen needs a council approval, All the 2 bedder needs is to close /seal a door leading to back of the house ?. Should i consult a council before reno, if i choose to ignore them and then lend it to two different tenants does what are the consequences ?.

    Thanks.
     
  2. wylie

    wylie Moderator Staff Member

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    One consequence is that your insurance will be void. Where is this?
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Yes, council approval for a granny flat is required. You will need to provide fire separation between the two dwellings. Any lease that you have will become voided once council issue a breach notice.
     
  4. Rajanmegamind

    Rajanmegamind New Member

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    @Wylie Reid Its in Blacktown LGA- Sydney.

    Fire separation on this existing home is going to negate any extra income which is generated by this dual occupancy ?. What is this breach notice ?. Unless someone complain to council does this been issued .
    Other than insurance aspect , is there anything to be concerned . if the council issues breach notice what are the options other than spending on this fire rated wall between main house and granny home.
     
  5. Marg4000

    Marg4000 Well-Known Member

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    Well, if you deliberately flout council regulations and there is a death or injury to tenants you have the possibility of criminal charges. Say there is a fire and a tenant can't get out. No insurance and you can be held legally liable.

    Laws and regulations are there for a reason. Ignore them at your peril as you have a duty of care to your tenants.
    Marg
     
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  6. Scott No Mates

    Scott No Mates Well-Known Member

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    If the people living in the other unit get injured etc due to a fire on the other side what have you done to mitigate risk to all occupants?

    When you get a breach notice you must comply with its requirements.
     
  7. Nick Valsamis

    Nick Valsamis Well-Known Member

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    It is hard to tell what the house is like, but in these arrangements it usually puts people off and they would rather rent a separate 3 bedroom house or granny flat.

    The separate just isn't going to be as good as a duplex type setup so it may not really be worth that much more by doing this.
     
  8. Rajanmegamind

    Rajanmegamind New Member

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    Will let out a single premises being older house , i guess less hassles that way.
    Thanks for inputs.
     
  9. MTR

    MTR Well-Known Member Premium Member

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    Wylie

    Not so, house and granny flat (not approved) insured, 2 separate leases.

    Same with another property in QLD with granny flat (not approved).

    I made sure I informed insurer that they were both not approved g/flats.

    MTR:)
     
  10. wylie

    wylie Moderator Staff Member

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    I find this hard to believe. If what is being let is against council regulations, I reckon your insurer would find a loophole. Do you have anything in writing that your property is covered including that they know it is not legal?
     
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  11. MTR

    MTR Well-Known Member Premium Member

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    All I can say is I had insurance cover for 2 properties with g/flat not approved and description of this on the policy. Full disclosure on my part and confirmed in writing.

    Probably 85-90% g/flats are not legal in Sydney, people would not buy if they could not get insurance cover, it would absolutely make no sense whatsoever.

    There are at least 3 insurance companies that cover that I am aware of through researching myself.

    You can also get around it another way, cover the buildings on the site regardless council approved or not, same as other structures on the site as long as you provide the description, however you use another company specific for Landlord insurance with that covers Limited Liability with 2 leases in place.
     
    Last edited: 17th Apr, 2016
  12. wylie

    wylie Moderator Staff Member

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    If you have it in writing, then I guess you can sleep comfortably. I'd be interested to know how many insurers would willingly insure a housing set-up that is not within the code or rules?
     
  13. MTR

    MTR Well-Known Member Premium Member

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    not many.
    I have recently sold both
     
  14. neK

    neK Well-Known Member

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    I personally be more concerned about the liability in the event of injury or loss of life. If you aren't covered for that, 1 claim could potentially wipe you out.

    @MTR where does the insurer stand on the public liability part of the insurance?
     
  15. MTR

    MTR Well-Known Member Premium Member

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    I have recently sold these 2 properties, but I never lost sleep

    insurance contract outlined what it covered including appendix to the policy which discloses cover and description of g/flat.
     
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